Released on: October 19, 2009, 8:20 am
Author: Trading Floor
Industry: Financial

Trading Floor has unveiled a new Forex Portfolio Model created by Saxo Bank’s strategy team.

The Portfolio model offers a way to reduce total portfolio volatility in the wake of the stock market rally that saw many investors turn away from Forex trading.

“Many investors are staying out of the Forex market - either because they lost money and have given up, or because they simply don’t know where to put their money,” said David Karsbøl, Chief Economist at Saxo Bank and Trading Floor commentator. “The Saxo Bank Forex Portfolio Model is a way of re-activating this idle money by applying them in a low-cost and relatively low risk fashion.”

The portfolio model is based on the Saxo Bank Fundamental Indices that measure the underlying economic strength (contraction or expansion) of 10 currencies: NZD, AUD, CAD, JPY, EUR, GBP, USD, CHF, SEK, and NOK. This should give a theoretical 45 possible currency crosses, but the model subtracts the12 most illiquid and expensive to trade and looks at 33.

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